[Lynn1218]

We have been in a land contract for 5 yrs. We paid $30+ in principal and $100k in interest. Contract was due in January, and we can't get financed for amount of contract. We stopped making payments in April, and received forfeiture notice from our local court/seller today. stating we have 15 days to pay or move out, or seller may take us to court to evict us. Can they sue us for back taxes and back payments? Please help! Thank you!

[famlife]

I'm not lawyer, but I think if you can't get financed by the end of contract you're SOL

[20yrsinBranson]

Originally Posted by Lynn1218

We have been in a land contract for 5 yrs. We paid $30+ in principal and $100k in interest. Contract was due in January, and we can't get financed for amount of contract. We stopped making payments in April, and received forfeiture notice from our local court/seller today. stating we have 15 days to pay or move out, or seller may take us to court to evict us. Can they sue us for back taxes and back payments? Please help! Thank you!

Yes they can.

20yrsinBranson

[jackmichigan]

You sound like one of those nightmare purchasers that Land Contract Sellers worry about. How far behind are you on the property taxes?

So, you paid off $30K of principal? Did the property appreciate as well? If so, you might want to see if you can work out another contract with terms you are able to fulfill. (But did you get legal assistance when making the purchase? Did you get title insurance or at least check the title? If you try to work out another contract, you should get legal assistance now.)

If you are unable to work out a new contract, or to catch up on your present contract (provided they'll amend or waive the balloon payment), you should try to work out an agreement with the Seller whereby you will provide a Quit Claim Deed relinquishing your interest in the property (so both of you don't have to go through the foreclosure process) and have them agree to allow you to walk away with no further consequences.

[jackmichigan]

Originally Posted by Lynn1218

Good day! I live in SE Michigan on a large acreage farm with an Artesian well so I am told. Property has been in my family since the early 1800's.

Your earlier thread makes this one a little confusing. Is the Land Contract on the home where you live...or is it on some other property?

[Lynn1218]

Originally Posted by jackmichigan

You sound like one of those nightmare purchasers that Land Contract Sellers worry about. How far behind are you on the property taxes?

So, you paid off $30K of principal? Did the property appreciate as well? If so, you might want to see if you can work out another contract with terms you are able to fulfill. (But did you get legal assistance when making the purchase? Did you get title insurance or at least check the title? If you try to work out another contract, you should get legal assistance now.)

If you are unable to work out a new contract, or to catch up on your present contract (provided they'll amend or waive the balloon payment), you should try to work out an agreement with the Seller whereby you will provide a Quit Claim Deed relinquishing your interest in the property (so both of you don't have to go through the foreclosure process) and have them agree to allow you to walk away with no further consequences.

Well Jack, as for "nightmare purchasers'" goes-----actually were a SAVIOR to the Sellers whom sat on this property vacant for over 10+ years with no income coming in and low taxes...they "JACKED" the price up and then taxes were multiplied 5 times over...for the "NEW" land contract purchase price- that we should NEVER have agreed to--but emotions get involved when its been in the family and your father grew up is this house and my grandparents home-as well as being in the family for 6 generations..that's all...

It sat VACANT with NO income coming in for 10+ years....They could NOT sell and DID not sell it when listed on the market because of so many "issues" with the property. So they thought lets get some family involved since they would want to keep it "IN THE FAMILY"

So, We came along and because we wanted to "keep" it in the family--big mistake...paid them over $2k a month on time for the last 5 years! And $4k year in taxes! Yes, they were able to pay off THEIR mortgage/taxes, make major improvements to THEIR home because of OUR payments and take trips constantly...while we lived in a house we spend $25k to make "LIVEABLE" All the time the roof leaking, basement constantly flooding, etc. etc, Yes, THEY LIED on the sellers disclosure---"TYPICAL NIGHTMARE SELLERS" And yes, our attorney is handling that as well...

Our land contact could NOT get financed in the condition it was in and for many other issues with the "PROPERTY, and we-went to several banks...

YES we have our attorney involved...unfortunately we trusted family at the beginning and made a huge mistake...NEVER again...OUR attorney now has us covered..no need to post anything more as I won't be checking back here. We will not deal with family or "NIGHTMARE SELLER" again on any land contract...buyer beware...should of listened and knew better...$200k wasted in 5 years a heck of a pill to swallow...won't get screwed again that's for sure...

[jackmichigan]

Sorry to hear your story. When people have real estate dealings with family, that calls for greater precautions and due diligence, not less.